The 10-year Treasury yield rose past 5% on Tuesday, a level not seen in over a decade.
The jump in yields weighed on stock futures, pointing to a lower open for major indexes.
Brent crude climbed to $108 a barrel, adding to concerns about persistent inflation.
Rising energy costs and higher borrowing rates are pressuring equity markets.
Investors are watching whether the Federal Reserve will adjust its rate stance.
Higher yields make bonds more attractive compared with stocks, pulling money out of equities.
Markets remain sensitive to any signals on inflation and interest rate policy.
